Federal Government Shutdown Begins October 1, 2025
As of October 1, 2025, the federal government is experiencing a shutdown due to the expiration of the continuing resolution from the Full-Year Continuation Appropriations and Extensions Act, 2025. This is the first U.S. government shutdown since 2019.
Impact on 2024 Tax Filers
The current shutdown does not affect 2024 tax filers who have an extension deadline of October 15, 2025. On the eighth day of the shutdown, many IRS employees are in a non-pay, non-duty status until further notice. Despite roughly 34,000 IRS workers being furloughed, about 53.6% of the IRS workforce remains on the job. Regardless of furloughing or a government shutdown, this currently does not affect the 2024 tax filing. Please ensure that you submit all required documents on time to avoid penalties.
Essential Services Continue, SBA Operations Affected
Essential government services remain in place, including Medicare, Medicaid, the military, law enforcement, air traffic control, and the United States Postal Service. However, this shutdown has an ongoing impact on the Small Business Administration. A quarter of the SBA staff is currently furloughed, while new 7(a) and 504 loans are suspended. That means many businesses are unable to secure government funding to purchase property, equipment, or expand their operations.
What If You Still Owe Taxes?
So the big question is, what if you still owe taxes? Although workers may be furloughed, you should still submit electronic documents. Set up direct deposit to avoid delays in receiving refunds, double-check deductions and tax credits before submission, and pay any income tax due to avoid further penalties.
How Peter Holtz CPA Can Help
At Peter Holtz CPA, once we receive your documents, we take the work and the stress of filing off your plate entirely.
IRS Delays and Filing Season Outlook
If you need to contact the IRS during this period, expect delays due to staffing constraints. The Taxpayer Assistance Center may be slower than usual. Despite any delays, you must still respond to IRS notices, and respond with care. Depending on how long the shutdown runs, it could affect the coming filing season.
Stay Prepared and Submit Documents Promptly
We understand that this is a stressful time, so please send your documents to us promptly, allowing us to file on time and address your tax needs.